Audit Reports

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Internal Controls Over the Emergency Disaster Relief Transportation Services Contract

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On January 20, we issued our assessment of internal controls over the Department's emergency disaster relief transportation services contract. We found that FAA and Landstar Express America provided an unprecedented response to the crisis as it unfolded, including arranging for over 11,000 trucks to move more than 14,000 truckloads of goods. We also identified opportunities for improving administration of the contract during future emergencies. First, better procedures were needed for evaluating contractor price quotes. Second, better documentation of the actual amount of goods or services provided was needed before authorizing invoices for payment. We brought those issues to the attention of FAA Southern Region management, which took immediate corrective action. The actions taken should improve controls over forthcoming billings for services provided following Hurricane Katrina. More importantly, the actions taken should significantly improve the process for administering the contract during future emergencies.